Governance has to do with the manner in which responsibility is discharged. Such a responsibility may be acquired through election; appointment or delegation in the public domain or in the area of commerce - corporate governance.

Good governance refers to a condition whereby a responsibility acquired through election; appointment or delegation is discharged in an effective, transparent, and accountable manner while bad governance is associated with maladministration in the discharge of responsibility. Good governance entails the existence of efficient and accountable institutions - executive, judicial, administrative, economic, corporate - and entrenched rules that promote development, protects human rights, respects the rule of law, and ensures that people are free to participate in, and be heard on, decisions that affect their lives.